Sbi life e-Shield: Online term plan with level and increasing cover options

Among several other term insurance plans now available online, SBI Life e-Shield provides those of you who are scouting for a high protection cover at an affordable price, a seemingly good product. Without much of hassles, you can easily buy the product online and can avail of any of the plan options under the plan.

Depending on your financial requirements, you can opt for either the level term cover plan (in which the amount of insurance cover or sum assured value remains the same throughout the term of the policy plan) or increasing cover plan (sum assured value is increased by some defined rate at a regular interval through the policy term). Further, the policy can be secured with or without accidental benefit rider.

In the increasing cover option amount of sum assured value increases at a simple interest of 10% after every 5 years. The increase is brought about with no hike in insurance premium. Nonetheless, premium amount payable for increasing cover is higher than the level cover plan.

Basic eligibility criteria: In respect of entry age; minimum entry age for both the level and increasing cover is 18 years, while maximum age for level cover plan is 65 years that for increasing cover is 60 years. And the maximum age at the policy maturity can be 70 years.

Premium: Premium for the policy is payable for the entire policy term only in annual mode. The policy rewards those maintaining a healthy lifestyle in the form of premium discounts or rebates to the insured and for smokers the plan is available at a relatively higher cost. For a minimum cover of Rs. 20 lakh, the insured needs to dole an amount of Rs. 3500 annually through the entire policy term. Women policyholders are also given rebate on the policy premium amount.

Additional Rider: The accidental benefit rider equivalent to the sum assured value or Rs. 50,00,000, whichever is lower can further be opted to protect the risk against accidents. No other rider, besides the inbuilt rider of accidental benefit is available.

Death Benefit: On death of the insured during the policy term, nominee of the policy becomes eligible for sum assured value as per the plan. In case of death by accident, the rider amount is also payable.

Maturity Benefits: As the policy is a pure term cover plan, no maturity benefits or survival benefits accrue to the insured if he/she survives through the term.

Taxation Benefits: Investment in the insurance is allowed for deduction u/s 80 of the income tax act. So, the entire amount paid as premium can be used to claim and reduce your income tax liability to the maximum of Rs. 1 lakh u/s 80C in a financial year.

Loan and Surrender facility: The e-term plan of Sbi life like other term plans does not offer loan and surrender facility. And also, when the insured discontinues premium payment policy lapses with no benefits accruing to the policyholder then. Nonetheless, policy revival option is available that can be done within a period of 3 years from the due date of the policy inception.

So, the plan offers a high cover of a minimum of Rs. 20 lakh with level or increasing cover at an affordable as well as cost-effective rates. However, when compared with other online pure life cover plans, accidental death benefit rider is payable only in case of death under few specified circumstances which is not the case in other online term plans of insurers. Also, if doesn't has the life cover requirement of such an high amount, the policy serves no end.